CapitaLand Investment - DBS Research 2025-02-28: Switching Gears To “Growth Mode”

• The strong performance is a shot of confidence for the group as CapitaLand Investment transitions into an asset-light and fee-income based company. We believe that investors will cheer the
  1. - Read this at SGinvestors.io -
  2. expected higher returns as the group continues to trim is balance sheet to achieve more operational efficiency.

Steady results.

• CapitaLand Investment (SGX:9CI) delivered strong FY 2024 results, with total PATMI surging 165% y-o-y to S$ 479mil. This was driven largely portfolio gains of S$ 230mil (+8% y-o-y) and lower revaluation losses (- S$ 261mil, 57% drop y-o-y).
• Operating PATMI, however, moderated 10% y-o-y from S$ 568mil to S$ 510mil, reflecting impact of divested assets.
• - Read this at SGinvestors.io -

Higher payout policy a pleasant surprise, and positive signal of management’s confidence of its cash generation ability.

• CapitaLand Investment has proposed a dividend of S$0.18 per share, comprising 12 cents core dividend and 6 cents special dividend-in-specie of 0.031 CapitaLand Integrated Commercial Trust (SGX:C38U) units per share. See CapitaLand Investment's dividends dates.
• The total payout ratio rises to 50% of cash PATMI, compared to 30% previously, and the Board is proposing to increase this to enhance shareholder returns.

Strategic divestments.

• Read more at SGinvestors.io.

Derek TAN DBS Group Research | Tabitha FOO DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-02-28 SGinvestors.io

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